CapitaLand sees overwhelming response to China condominium

CapitaLand sees overwhelming response to China condominium

By Jonathan Peeris

SINGAPORE : Property developer CapitaLand on Tuesday said it has seen overwhelming response to its new condominium in Beijing, with 95 per cent of phase one units sold in just over two weeks.

The condominium, called the Beaufort, sits on a 53,808-square metre site and is located within walking distance to Beijing Chaoyang Park, one of China’s largest city parks.

An entire block, comprising 467 units, was launched for sale. The average launch price for the units was S$5,600 per square metre, with a total sales value amounting to over S$167 million.

Commenting on the Beaufort’s success, CEO of CapitaLand China Holdings, Jason Leow, said the Chinese government has introduced a slew of measures to ensure that the property market is developing at a sustainable pace.

When completed, the Beaufort will have a total of four residential blocks with 1,027 high-end apartments, comprising studios, and one- to four-bedroom units.

The entire development will be completed over three to five years, with the first residential block slated to be handed over to the homebuyers by 2011. - CNA/ms

Source : Channel NewsAsia - 09 February 2010

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URA puts up Mohamed Sultan Road office site for sale

URA puts up Mohamed Sultan Road office site for sale

By Mok Fei Fei

SINGAPORE: The Urban Redevelopment Authority (URA) on Tuesday launched a transitional office site at Mohamed Sultan Road for sale by public tender.

The 15-year leasehold site has an area of about 0.62 hectare and a maximum permissible gross floor area of about 9,200 square metres.

The minimum price for the site is S$9.33 million.

Since October 2008, the land parcel was made available for sale through the Reserve List System. Under the system, a site would be released for sale only if a bid with an acceptable minimum price is received.

Two weeks ago, URA said it had accepted an application from a developer to put up the site for sale.

In October 2008, URA had rejected a sole bid for the Mohamed Sultan site as the price offered was deemed to be too low. Back then, RSP Architects Planners & Engineers had put in a bid of S$4.65 million.

The site was subsequently placed on the Reserve List. The current tender for the site will close on March 18.

- CNA/sc

Source : Channel NewsAsia  - 09 February 2010

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Junket promoters may have finger in moneylending pie

Junket promoters may have finger in moneylending pie

Some think they could be using a moneylender’s licence to get around tight casino rules

By ARTHUR SIM

(SINGAPORE) It looks like everyone wants a piece of the casino action when it opens.

Easier entry: The criteria for award of a moneylending licence are less stringent and daunting compared to those for a junket promoter’s licence
According to the Insolvency and Public Trustee’s Office, which comes under the Ministry of Law, the number of licensed moneylenders increased by 47 in 2009, up from 173 in 2008, representing a jump of 27 per cent.

Between 2007 and 2008, the number of moneylenders rose just 2.4 per cent from 169 to 173, while between 2006 and 2007, the increase was 12.6 per cent from 150 to 169.

To get a licence, a security deposit of $20,000 has to be placed with the Accountant-General, and it takes about 12 days for applications to be processed.

While there are a considerable number of other requirements which must be met before licences are given, these are less stringent and daunting compared to those for a junket promoter’s licence. Which is why some junket promoters may be seeking a moneylender’s licence instead as, ultimately, both provide the same service: extending credit.

A source has also told BT that junket promoters are indeed trying to circumvent the Casino Regulatory Authority’s (CRA) strict licensing requirements for junket promoters by becoming licensed moneylenders instead.

Suitability checks on junket promoters are said to be as exhaustive as those for the casino licence, and includes the declaration of financial and business dealings and records.

The recently announced Casino Control Credit Regulation, which has strict controls on how credit can be extended by the casino and junket promoters (including providing an approved credit assessment criteria for clients), is not expected to apply to moneylenders.

In Singapore, there are thought to be between 20 and 30 junket promoters in operation, although none has been licensed by the CRA yet.

David Poh, president of the Moneylenders’ Association of Singapore, does say that the opening of the casinos could be one reason why there was a spike in the number of moneylenders in 2009.

But he said that the recent increase in numbers could also simply be because it is now easier to get a licence and that moneylending is increasingly recognised as a profitable business. Mr Poh also noted that there is no cap on the interest rates charged by moneylenders.

There are no official statistics on how many moneylenders, licensed or otherwise, have made loans to people involved in gambling. A recent report in The Straits Times estimated that more than 90 per cent of the people who seek help from moneylenders have debts that are related to gambling.

The same report also cited Christian Care Services as saying that 18 out of 20 cases it saw on moneylender issues cited gambling as the problem.

So, with the casinos set to open, perhaps it is not surprising that the number of licensed moneylenders has increased then.

The government has recently acted against unlicensed moneylenders or loan sharks, regardless of whether they target gamblers or not.

In January, changes to the Moneylenders Act were made such that the assets of suspected loan sharks under criminal detention can be frozen, and prosecutors will have greater access to the financial records of illegal moneylenders and their associates.

The courts will also be empowered to deal with those who orchestrate loan shark operations from overseas.

Tougher penalties include mandatory jail terms and possible caning.

At the moment, however, it is still not a crime to borrow from unlicensed moneylenders.

Source : Business Times - 09 February 2010

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Casino licence puts spotlight on Genting

Casino licence puts spotlight on Genting

Stock expected to do well today but some analysts see limited upside

By EMILYN YAP

THE eyes of many investors could be on the performance of Genting Singapore shares today, after Resorts World Sentosa (RWS) received its casino licence from the Casino Regulatory Authority on Saturday.

The counter put up a strong showing on Friday even before there was an announcement of the award. While the Straits Times Index took a beating and lost 2.24 per cent or 61.4 points, the stock went against the tide to put on 2.78 per cent or three cents to end at $1.11.

In fact, Genting had gained as much as 9.26 per cent or 10 cents in the afternoon, to reach an intraday high of $1.18.

A hefty 275.96 million shares changed hands, making it the most heavily traded stock on Friday.

Genting was also the only gainer among 30 STI component stocks - one striking green winner amid a sea of red.

Bank of America-Merrill Lynch research analyst Melvyn Boey believes that Genting should do well today. With the announcement on Saturday, ‘the uncertainty of (RWS) not getting the licence is behind us’, he said.

But he also saw a chance for investors to take profit. The stock looks expensive from a valuation perspective even though it has an attractive business proposition, he said.

Genting has rallied significantly in the last few months in the run-up to RWS’s opening. It reached a high of $1.30 on Dec 31, 2009.

In a Jan 27 note, DBS Vickers downgraded the counter to ‘hold’ and cut the target price to $1.20 from $1.30, noting that there would be limited upside after a ‘magnificent run’.

It added that there could be a share overhang from the mandatory conversion of some remaining convertible bonds this month.

Four hotels and more than 20 restaurants and shops have opened at the integrated resort on Sentosa. RWS has not said when the casino and the Universal Studios theme park would greet the public. An announcement is expected today from the company.

Still, many market watchers are betting that the casino will open before Chinese New Year, which arrives this Sunday. According to Mr Boey, Chinese New Year crowds at other casinos are typically two to three times that of the average.

RWS had submitted its application for a casino licence in October last year and provided the Casino Regulatory Authority with more information in December. Application processing takes about three months if the paperwork is in order.

Marina Bay Sands, the other integrated resort scheduled for launch this year, has yet to receive its casino licence.

It sent in its application in October and provided additional information in November.

Source : Straits Times - 08 February 2010

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